Eureka daily sentinel. [volume] (Eureka, Nev.) 1871-1887, 1887-09-09
THE FINANCIAL POLICY or
THE ADMINISTRATION.


We made some a~llusion a few days ago
to the policy of the Administration with
reference to the public lands. It's ad.
ministration Of the Treasury Depart.
ment is equally satisfactory. It's at.
titude on the silver question must be
contradistinguished from the simple
management of the Treasury. In this
respect it is neither better nor worse
than the Republican Administrations
which preceded it-better if any differ.
ence, for it has coined the full require.
ment Of 5 1000, 900 per month, and has
taken a little more pains to get it out
among the people. But on the subject of
discharging the public debt it has done
vastly better than any Of its predeces.
sors.
When the present Administration
came into power it found the debt di.
vided into three GLASSES: Three per cent
bonds, subject to the call of the Gov
eminent; four and a half per cent bonds,
maturing in 1891, and four per cents not
falling due until 1907; the total aggre-
gate of the Indebtedness being, in round
figures, one billion two and q half mill.
ions. These are not the exact figures
1--WE state them from memory but they
are lear enough for the purposes OF this
article. Neither have we the figures at
hand touching the aggregate OF each
particular class of bonds, nor does that
matter, as we are dealing with a policy
rather than a statement of statistical de-
tail. As we have stated, the three per
cent bonds were r~edeemable at the pleas.
ure of the Government. None of the
rest could be called, except with the
consent of the holder, until maturity, in
1891 in the one case and 1907 in the
other. The two latter classes bear a
ruinous rate of premium in the money
markets of the country. The four and
a halls. having a shorter time to run, are
quoted to-day in New York at 9 per
cent and the tours, being the long time
bonds, command 2S per cent premium.
The money bags and shylocks who hold
these safe securities, with no taxes to
pay or them, refuse to give them up un-
less they can be well paid for the sur
render.
The action Of Mr.. Cleveland's admin
istration on the question of the public
debt, the firm determination to reduce it
as rapidly as possible, has been in the
broadcast sense commendable. The three
per cents were called right along at the
rate Of ten millions per month until the
last one had been liquidated and cancelled.
This occurred only a short time ago and
now Secretary Fairchild is moving on
the entertainments of the holders of the
tours and a hall, which are the next to
mature and on which the premium is the
OF course it is understood that
nothing can be done without the consent
of the holder-to get in these bonds be-
they are due the Government must
pay the premium. The bondholders
have a soft thing and they are DESTROYS
of holding or to it. But the Secretary
of the Treasury is equally anxious to get
the bonds in and stop interest, and put
the money out among the people from
his overlooking vaults. Millions went
out for the threes. The Government had
the option of paying them at pleasure.
The bondholder was compelled to &C.
the money for his bond whenever it
rendered, and the Secretary con-.
to make the tender until all were
paid.
The land booms in the West, and the
aush times generally are as much due to
This line of policy as to any other cause
that can be named. When the old equity,
bondholder is compelled to take
The money for his non.taxable bond, he
get out into the active business of
the world and endeavor to earn taxes
and interest on that same money. 1t is
human nature for him to do SO, because
in direct ratio with his acquisition Of
wealth his meanness and greed are pretty
apt to crop out. He is forced to take
sven chances with his money in develop.
Ing enterprises the anne as the rest Of
the business world. He may buy q mine
Nevada, who knows? But whether
be does or not the policy of taking the
bonds in and forcing the money out into
The channels of business is the correct
It is a feature of this Admins.
too, which must receive the
approval Of all right-thinking
men.
As we have already stated Secretary
Fairchild is doing what he can to get in
The fours and . half. He is managing the